News

Wolf Pack Activism Research Featured in Dealmaking Media

June 26, 2015

Recent research conducted by Managing Principal Gaurav Jetley and Vice President Xinyu Ji into so-called "wolf pack" activism was recently cited in dealmaking media outlets The Street and The Deal. In related articles, these media reported on new activity by the U.S. Securities and Exchange Commission's (SEC) enforcement unit investigating these alleged wolf packs -- which occur when activists or other hedge funds are focused on a common target, but are not a part of a declared group pursuant to Section 13(d)(3) of the Securities Exchange Act of 1934.

The articles note that it is difficult to determine how pervasive these wolf packs are in practice, but highlight Mr. Jetley and Mr. Ji's research as helping to illustrate this type of activism, as well as the different strategies employed by these activists. The research suggests that activists crossing reportable ownership thresholds wait to file the required Form 13-D in order to enable members of a wolf pack to accumulate large positions of the target company before disclosing their stake.